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Originally posted by GoldenChild
It's really not about that - they bought Youtube some time ago, after realising that they couldn't compete with them.
It was always part of their business strategy to close Google Video down, it doesn't make sense for them to run competing services.
The email announcement states that the site will no longer host any videos as of April 29th. Google has invited their users to download their videos and upload them to YouTube to keep them alive if they haven't done so already.